Christine Lagarde, President of the European Central Bank (ECB), called on lawmakers to approve the regulatory framework for cryptocurrencies, suggesting the possibility of preventing Russia from circumventing economic sanctions.
Speaking to reporters at an informal meeting of finance and finance ministers on Friday, Lagarde said the European Central Bank would “strongly and decisively” enforce sanctions against Russia imposed by European lawmakers in response to the country’s invasion of Ukraine. Asked about Russia’s possible use of cryptocurrencies to avoid some of these measures, the head of the European Central Bank called for action on the existing proposal for a regulatory framework for digital assets.
“When there is a ban, or a ban, or a boycott, or a mechanism, there are always criminal ways that will try to get around the ban or the ban,” Lagarde said. “It is imperative that MiCA goes through as quickly as possible, so we have a regulatory framework in place to discover cryptocurrencies.”
Christine Lagarde, President of the European Central Bank. Source: YouTube
MiCA, or Markets in Crypto Assets, proposes to create “a regulatory framework for the crypto market that supports innovation and harnesses the potential of cryptocurrencies in a way that maintains financial stability and protects investors.” The proposal was first submitted to the European Commission in September 2020 and adopted by the European Council in November 2021, with the proposal to be voted on in the European Parliament on Monday.
However, Mayor Stefan Berg announced on Friday that he is postponing the vote due to concerns that it could be misinterpreted as a ban on Proof of Work cryptocurrency mining. At the time of publication, there was no specific date for EU officials to vote on the structure.
On Thursday, US President Joe Biden announced a series of sanctions aimed at imposing “destructive costs” on Russia because of the country’s attack on Ukraine. The President announced that the United States and its allies would impose sanctions on five major Russian banks, as well as many elite entities that “improved at the expense of the Russian state.” The economic measures did not include cutting Russia off from the SWIFT payment system or crypto transfers.
Related topics: The crypto community reacts to the Russian war in Ukraine
The situation in Ukraine is still evolving, but there have been reports of Russian bombing of locations across the country, including a military airport near the capital Kyiv, after Russian President Vladimir Putin announced a “special military operation” on Thursday. As the crisis developed, members of the crypto community made donations to the Ukrainian military and local organizations.